The Michaels Companies presents 3Q 2016 financial results

  • Total net sales increased 5.0%; comparable store sales decreased 2.0%
  • Operating income of $146.3 million compared to $155.9 million in fiscal 2015; adjusted operating income of $148.6 million
  • Diluted EPS of $0.37 compared to $0.37 in fiscal 2015; adjusted diluted EPS of $0.40
  • Management provides updated guidance for fiscal 2016 adjusted diluted EPS to be between $1.86 and $1.90 compared to $1.72 in fiscal 2015
  • Board of Directors Increases Share Repurchase Authorization by $300 million

IRVING, Texas, 2016-Dec-09 — /EPR Retail News/ — The Michaels Companies, Inc. (NASDAQ: MIK) today (2016-12-06) announced financial results for the third quarter ended October 29, 2016.

“In a tough environment, I am encouraged we continued to increase adjusted net income, gain market share, and invest to support our long-term strategy. We are disappointed our plans did not result in expected comp and earnings growth, and we have taken steps to position the fourth quarter for better performance,” said Chuck Rubin, Chairman and Chief Executive Officer. “We are the leader in the channel, and we have a strong financial model with consistent cash flows. Although the industry may be facing some temporary headwinds, we intend to leverage our leadership position to continue to expand our market share while continuing to return cash to shareholders.”

Third Quarter Highlights

  • Net sales increased 5.0% to $1.227 billion, from $1.168 billion in the third quarter of fiscal 2015. The increase was primarily a result of the acquisition of Lamrite West in February 2016 and sales from 19 additional stores (net of closures). Comparable store sales decreased 2.0% driven by a decrease in customer transactions, which was partially offset by an increase in average ticket.
  • Gross profit increased 0.2% to $466.6 million, from $465.6 million in the third quarter of fiscal 2015. As a percentage of net sales, gross profit was 38.0% compared to 39.8% in the third quarter of fiscal 2015. The decrease, as a percentage of net sales, was due to a higher mix of sales from merchandise sold on promotion, the timing of distribution-related costs, and the acquisition of Lamrite West, including the impact of Lamrite West’s wholesale business, which has a lower gross margin rate than the Michaels business. The decrease, as a percentage of sales, was partially offset by improved sourcing and pricing efficiencies.
  • Selling, general and administrative expense, including store pre-opening costs, (“SG&A”) increased 3.4% to $320.3 million, or 26.1% of sales, from $309.7 million, or 26.5% of sales, in the third quarter of fiscal 2015. The increase in SG&A was primarily due to $17.3 million associated with the acquisition of Lamrite West, including $1.6 million of integration expenses; expenses associated with the operation of 19 additional stores (net of closures); and higher professional fees. The increase was partially offset by a decrease in incentive-based compensation and lower marketing expense.
  • Operating income was $146.3 million, compared to $155.9 million in the third quarter of fiscal 2015. As a percent of net sales, operating income was 11.9% compared to 13.3% in the third quarter of fiscal 2015. Excluding net non-recurring, inventory-related purchase accounting adjustments and integration expenses associated with the acquisition of Lamrite West, adjusted operating income was $148.6 million, or 12.1% of net sales.
  • Interest expense decreased $2.3 million to $31.5 million, from $33.8 million in the third quarter of fiscal 2015 due to a voluntary principal payment of $150.0 million on the term loan credit facility in the fourth quarter of fiscal 2015 and interest rate savings from the refinancing of the revolving credit facility. The Company recorded a loss on the early extinguishment of debt of $6.9 million during the third quarter of fiscal 2016 related to the refinancing of the term loan credit facility in September 2016.
  • The effective tax rate was 29.0% for the third quarter of fiscal 2016, compared to 37.0% for the third quarter of fiscal 2015. The lower effective tax rate is primarily due to benefits realized from our direct sourcing initiatives, certain federal tax credits and a decrease in state taxes.
  • Net income was $76.5 million, compared to $76.8 million in the third quarter of fiscal 2015. As a percent of net sales, net income was 6.2% compared to 6.6% in the third quarter of fiscal 2015. Excluding net non-recurring, inventory-related purchase accounting adjustments, integration expenses associated with the acquisition of Lamrite West, and losses on early extinguishments of debt and refinancing costs, adjusted net income for the third quarter of fiscal 2016 was $82.1 million, or 6.7% of net sales.
  • Diluted earnings per common share was $0.37, flat with the third quarter of fiscal 2015. Excluding net non-recurring, inventory-related purchase accounting adjustments, integration expenses associated with the acquisition of Lamrite West, and losses on early extinguishments of debt and refinancing costs, adjusted diluted earnings per common share for the third quarter was $0.40.
  • During the third quarter of fiscal 2016, the Company opened 14 new Michaels stores, compared with 10 new Michaels store openings in the third quarter of 2015. At the end of the third quarter, the Company operated 1,221 Michaels stores, 112 Aaron Brothers stores, and 35 Pat Catan’s stores.
  • The Company ended the third quarter of fiscal 2016 with $150.0 million in cash and cash equivalents, $2.8 billion in debt and $792.7 million in availability under its asset-based revolving credit facility.
  • Inventory at the end of the third quarter increased $117.0 million, or 9.2%, to $1.394 billion, compared to $1.277 billion at the end of the third quarter of fiscal 2015. The increase in inventory was due to $95.4 million in additional inventory from the acquisition of Lamrite West. Average Michaels inventory on a per store basis, inclusive of distribution centers, in transit and inventory for the Company’s e-commerce site, was flat compared to average inventory per store at the end of the third quarter of fiscal 2015.
  • During the quarter, the Company purchased 1.2 million shares, or $29.5 million, under its share repurchase authorization, previously announced in March 2016.

Share Repurchase Authorization

In December 2016, the Board of Directors authorized the Company to purchase, from time to time, as market conditions warrant, $300 million of the Company’s common stock, which is in addition to its prior repurchase authorization. As of December 6, 2016, the total authorization for future repurchases was approximately $343.5 million. The share-repurchase program does not have an expiration date, and the timing and number of repurchase transactions under the program will depend on market conditions, corporate considerations, debt agreements, and regulatory requirements.

Fourth Quarter and Fiscal Year 2016 Outlook:

For the fourth quarter of fiscal 2016, the Company expects:

  • Comparable store sales growth to be flat to down 1.5%;
  • Adjusted operating income of $335 million to $348 million;
  • Interest expense to be approximately $31 million;
  • The effective tax rate to be approximately 36%; and
  • Adjusted diluted earnings per common share of $0.94 to $0.98, based on diluted weighted average common shares of 204 million.

For fiscal 2016, the Company expects:

  • Comparable store sales to be approximately flat;
  • Total net sales growth, including revenues from Lamrite West, of 5.8% to 6.2%;
  • Approximately 1.3% sales growth from 22 net new store openings, including 3 new Pat Catan’s stores;
  • Lamrite West to generate $225 million to $250 million in revenues;
  • Adjusted operating income to be in the range of $724 million to $737 million, excluding approximately $14 million to $15 million of integration costs and net non-recurring, inventory-related purchase accounting entries;
  • Annual interest expense to be approximately $127 million;
  • The effective tax rate to be approximately 35%;
  • Adjusted diluted earnings per common share to be between $1.86 and $1.90, based on diluted weighted average common shares of approximately 207 million; and
  • Capital expenditures of between $115 million and $125 million.

Conference Call Information

A conference call to discuss third quarter financial results is scheduled for today, December 6, 2016, at 8:00 am CST. Analysts and investors who would like to join the conference call are encouraged to pre-register for the conference call using the following link: http://dpregister.com/10096593. Callers who pre-register will be given a conference call passcode and a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. Investors without internet access or who are unable to pre-register can join the call by dialing (866) 777-2509 or (412)-317-5413.

The conference call will also be webcast at http://investors.michaels.com/. To listen to the live call, please go to the website at least 15 minutes before the call is scheduled to begin to register and download any necessary audio software. The webcast will be accessible for 30 days after the call. Additionally, a telephone replay will be available untilDecember 13, 2016, by dialing (877) 344-7529 or (412) 317-0088, access code 10096593.

Non-GAAP Information

This press release includes non-GAAP measures including Adjusted EBITDA; operating income excluding integration costs and non-recurring, inventory-related purchase accounting entries related to the acquisition of Lamrite West (“Adjusted operating income”); net income excluding integration costs, non-recurring, inventory-related purchase accounting entries related to the acquisition of Lamrite West, and losses on early extinguishments of debt and refinancing costs (“Adjusted net income”); and earnings per share excluding integration costs, non-recurring, inventory-related purchase accounting entries related to the acquisition of Lamrite West, and losses on early extinguishments of debt and refinancing costs (“Adjusted earnings per share”). The Company has reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures in a table accompanying this release. The Company believes that these non-GAAP financial measures not only provide its management with comparable financial data for internal financial analysis but also provide meaningful supplemental information to investors. Specifically, these non-GAAP financial measures allow investors to better understand the performance of the Company’s business and facilitate a meaningful evaluation of its quarterly and fiscal 2016 diluted earnings per common share and actual results on a comparable basis with its quarterly and fiscal 2015 results.

In evaluating these non-GAAP financial measures, investors should be aware that in the future the Company may incur expenses or be involved in transactions that are the same as or similar to some of the adjustments in this presentation. The Company’s presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by any such adjustments. The Company has provided this information as a means to evaluate the results of its ongoing operations. Other companies in the Company’s industry may calculate these items differently than it does. Each of these measures is not a measure of performance under GAAP and should not be considered as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.

Forward-Looking Statements

This news release includes forward-looking statements which reflect management’s current views and estimates regarding the Company’s industry, business strategy, goals and expectations concerning its market position, future operations, margins, profitability, capital expenditures, share repurchases, liquidity and capital resources, and other financial and operating information. The words “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “imply,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” and similar terms and phrases are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company cannot assure investors that future developments affecting the Company will be those that it has anticipated. Actual results may differ materially from these expectations due to risks relating to the effect of economic uncertainty, risks associated with our substantial outstanding indebtedness of $2.8 billion, changes in customer demand, risks relating to our failure to adequately maintain security and prevent unauthorized access to electronic and other confidential information, increased competition including internet-based competition from other retailers, risks relating to our reliance on foreign suppliers, risks relating to how well we manage our business, risks related to our ability to open new stores and increase comparable store sales growth, damage to the reputation of the Michaels brand or our private and exclusive brands, risks associated with executing or integrating an acquisition, a business combination or major business initiative, and other risks and uncertainties including those identified under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), which is available at www.sec.gov, and other filings that the Company may make with the SEC in the future. If one or more of these risks or uncertainties materialize, or if any of the Company’s assumptions prove incorrect, the Company’s actual results may vary in material respects from those projected in these forward-looking statements. Any forward-looking statement made by the Company in this news release speaks only as of the date on which the Company makes it. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

About The Michaels Companies, Inc.:

The Michaels Companies, Inc. is North America’s largest specialty provider of arts, crafts, framing, floral, wall décor, and seasonal merchandise for the hobbyist and do-it-yourself home decorator. As of October 29, 2016, the Company owned and operated 1,368 stores in 49 states and Canada under the brands Michaels, Aaron Brothers, and Pat Catan’s. The Michaels Companies, Inc., also owns Artistree, a manufacturer of high quality custom and specialty framing merchandise, and Darice, a premier wholesale distributor in the craft, gift and decor industry. The Michaels Companies, Inc. produces a number of exclusive private brands including Recollections®, Studio Decor™, Bead Landing®, Creatology®, Ashland®, Celebrate It®, Art Minds®, Artist’s Loft®, Craft Smart®, Loops & Threads®, Make Market®, Foamies®, LockerLookz®, and Sticky Sticks®. Learn more about Michaels at www.michaels.com.

Investor Contacts:
The Michaels Companies, Inc.
Kiley F. Rawlins, CFA
972-409-7404
Kiley.Rawlins@michaels.com

ICR, Inc.
Farah Soi / Anne Rakunas
203-682-8200
Farah.Soi@icrinc.com / Anne.Rakunas@icrinc.com

Financial Media Contact:
ICR, Inc.
Jessica Liddell
203-682-8200

Julia Young
203-682-8208
Michaels@icrinc.com

Source: The Michaels Companies, Inc.

Express, Inc. announced its 3Q 2016 financial results

  • Net sales decreased 7% to $506.1 million.
  • Diluted EPS was $0.15, including a $0.04 net tax benefit.
  • Total inventory was down 6%.

COLUMBUS, Ohio, 2016-Dec-05 — /EPR Retail News/ — Express, Inc. (NYSE:EXPR), a specialty retail apparel company, announced its financial results for the third quarter of 2016. These results, which cover the thirteen and thirty-nine weeks ended October 29, 2016, are compared to the thirteen and thirty-nine weeks ended October 31, 2015.

David Kornberg, the Company’s president and chief executive officer, stated: “Our third quarter performance was highlighted by sales and earnings in line with our guidance and progress made addressing the areas noted for improvement during our second quarter call. This progress included refocusing our brand projection and marketing to be more consistent with our core demographic and additional steps taken to drive customer acquisition and retention. Notably, while mall traffic challenges continued to impact our store performance, we achieved a double digit increase in e-commerce sales.”

Mr. Kornberg, continued: “We expect the holiday season to remain challenging as mall traffic and a highly promotional retail environment continue to be headwinds. That being said, we believe our focus and execution against our key priorities, which include driving improved profitability through a balanced approach to growth, elevating our brand and customer experience, investing in the growth and development of our associates and achieving the benefits from our systems implementations, will position our Company to create shareholder value over the long term.”

Third Quarter 2016 Operating Results:

  • Net sales decreased 7% to $506.1 million from $546.6 million in the third quarter of 2015.
  • Comparable sales (including e-commerce sales) decreased 8%, compared to a 6% increase in the third quarter of 2015.
  • E-commerce sales increased 15% to $96.3 million.
  • Merchandise margin declined by 340 basis points driven by increased promotional activity. Buying and occupancy as a percentage of net sales rose by 160 basis points. In combination, this resulted in a 500 basis point decline in gross margin, representing 30.0% of net sales compared to 35.0% in last year’s third quarter.
  • Selling, general, and administrative (SG&A) expenses were $136.6 million versus $146.6 million in last year’s third quarter. As a percentage of net sales, SG&A expenses increased by 20 basis points to 27.0%.
  • Operating income was $15.1 million, or 3.0% of net sales, compared to $44.5 million, or 8.1% of net sales in the third quarter of 2015.
  • Income tax expense was $2.8 million, at an effective tax rate of 19.6%, compared to $16.9 million, at an effective tax rate of 39.2% in last year’s third quarter. The effective tax rate for the thirteen weeks ended October 29, 2016 includes a net tax benefit of approximately $2.9 million attributable to certain discrete items that occurred during the third quarter.
  • Net income was $11.6 million, or $0.15 per diluted share and includes a net $0.04 per diluted share benefit related to the aforementioned income tax items. This compares to net income of $26.3 million, or $0.31 per diluted share, in the third quarter of 2015.
  • Real estate activity for the third quarter of 2016 is presented in Schedule 5.

Third Quarter 2016 Balance Sheet Highlights:

  • Cash and cash equivalents totaled $101.9 million versus $91.2 million at the end of the third quarter of 2015. During the thirty-nine weeks ended October 29, 2016, approximately $51.5 million was used to repurchase approximately 3.2 million shares of the Company’s outstanding common stock.
  • Capital expenditures totaled $80.9 million for the thirty-nine weeks ended October 29, 2016 compared to $85.0 million for the thirty-nine weeks ended October 31, 2015.
  • Inventory was $341.9 million compared to $364.7 million at the end of the prior year’s third quarter, a 6% decrease.

Investors:
ICR, Inc.
Allison Malkin
203-682-8225

Media:
Express, Inc.
Robin Hoffman
614-474-4834
Director, Communications

Source: Express, Inc.

Sears Holdings to release 3Q 2016 financial results on Thursday, December 8, 2016

HOFFMAN ESTATES, Ill., 2016-Dec-02 — /EPR Retail News/ — Sears Holdings (NASDAQ: SHLD) announced today (Dec. 1, 2016 ) that it expects to release its financial results for the Company’s fiscal 2016 third quarter before the market opens on Thursday, December 8, 2016, and simultaneously post a pre-recorded conference call and audio webcast on its corporate website. It will feature prepared remarks from Jason M. Hollar, chief financial officer, who will focus his comments to provide additional context around the quarter.

The pre-recorded conference call may be accessed by telephone at 844.826.0613 or 973.200.3092 (conference ID: 31452902), and on Sears Holdings’ website at http://www.searsholdings.com/invest/ under “Events & Presentations.” The accompanying presentation and transcript will be posted online in conjunction.

About Sears Holdings Corporation
Sears Holdings Corporation (NASDAQ: SHLD) is a leading integrated retailer focused on seamlessly connecting the digital and physical shopping experiences to serve our members – wherever, whenever and however they want to shop. Sears Holdings is home to Shop Your Way®, a social shopping platform offering members rewards for shopping at Sears and Kmart as well as with other retail partners across categories important to them. The company operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation, with full-line and specialty retail stores across the United States. For more information, visit www.searsholdings.com.

NEWS MEDIA CONTACT:
Sears Holdings Public Relations
(847) 286-8371

SOURCE: Sears Holdings Corporation

Tiffany & Co. announces 3Q 2016 financial results

NEW YORK, 2016-Dec-01 — /EPR Retail News/ — Tiffany & Co. (NYSE:TIF) reported that worldwide net sales increased 1% in the three months (“third quarter”) ended October 31, 2016, reflecting mixed results across geographic regions and product categories. Net earnings increased 5% in the third quarter and earnings per diluted share rose 9%.

In the third quarter:

  • Worldwide net sales rose 1% to $949 million and comparable store sales declined 2%. A modest increase in fashion jewelry sales was offset by softness in other product categories. On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars (see “Non-GAAP Measures”), worldwide net sales were unchanged from the prior year and comparable store sales declined 3%.
  • Net earnings increased 5% to $95 million, or $0.76 per diluted share, from $91 million, or $0.70 per diluted share, in the prior year. The earnings growth reflects an improvement in gross margin and, to a lesser extent, lower interest and other expenses, partly offset by a lack of sales leverage on selling, general and administrative expenses.

In the year-to-date (nine months ended October 31):

  • Worldwide net sales of $2.8 billion were 4% below the prior year, and comparable store sales declined 6% due to varying rates of decline in all regions except Japan. On a constant-exchange-rate basis, worldwide net sales and comparable store sales were 4% and 7%, respectively, below the prior year.
  • Net earnings were $288 million, or $2.29 per diluted share, compared with $301 million, or $2.32 per diluted share, in the prior year. Earnings in the current year-to-date included a tax benefit of $0.05 per diluted share in the first quarter related to the settlement of a tax examination. Earnings in the first nine months of the prior year included an impairment charge of $0.05 per diluted share in the second quarter in respect of a loan to a diamond mining company (see “Non-GAAP Measures”).

Frederic Cumenal, chief executive officer, said, “We are encouraged by some early signs of improvement in sales trends, but we clearly need more positive data over time before this can be considered an inflection point. In this recent quarter, we saw a smaller sales decline in the U.S. from earlier this year, while Asia-Pacific results reflected strong growth in mainland China and a relatively smaller decline in Hong Kong. Our business in Japan performed well which we attribute to spending by domestic consumers, but we believe the strengthening of the yen has negatively impacted purchases by Chinese consumers. We also saw relative strength in UK sales, but a continuation of softness on the European continent.”

He added, “This year, we’ve added exciting new designs across our jewelry and watch categories and are pleased with initial customer response. As the global environment continues to reflect economic and other challenges that we believe are continuing to affect customer demand, it is more important than ever that we remain focused on strategies to deliver extraordinary products and experiences to our customers. Over the long-term, our objective is to enhance profitability and productivity through sales growth and prudent expense and inventory management, while further strengthening our competitive position among global luxury brands.”

Net sales by region were as follows:

  • In the Americas, total sales of $417 million in the third quarter were 2% below the prior year, and sales of $1.25 billion in the year-to-date were 7% below the prior year; comparable store sales declined 2% and 7% in the respective periods. On a constant-exchange-rate basis, total sales declined 2% in the third quarter and 6% in the year-to-date; comparable store sales declined 2% and 7%, respectively. Management attributed the sales decline in the quarter to lower spending by U.S. customers which was largely offset by higher spending attributed to foreign tourists primarily from Japan.
  • In the Asia-Pacific region, total sales rose 4% to $247 million in the third quarter and declined 4% to $715 million in the year-to-date; comparable store sales declined 7% and 11%, respectively. On a constant-exchange-rate basis, total sales rose 3% in the third quarter and declined 2% in the year-to-date; comparable store sales declined 7% and 10%, respectively. In the quarter, management noted double-digit sales growth in China, solid retail and wholesale sales growth in Korea and a decelerating rate of sales decline in Hong Kong, as well as continued sales declines in Australia and Singapore.
  • In Japan, sales benefited from the yen strengthening versus the U.S. dollar, with total sales increasing 13% to $150 million in the third quarter and 10% to $419 million in the year-to-date, but were negatively affected by lower wholesale sales; comparable store sales rose 20% and 15%, respectively. However, on a constant-exchange-rate basis, total sales declined 4% in the third quarter and 3% in the year-to-date, reflecting lower wholesale sales, while comparable store sales rose 2% and 1%, respectively. Management noted higher spending attributed to local customers in the quarter, along with lower spending attributed to Chinese tourists in both periods.
  • In Europe, total sales declined 10% to $104 million in the third quarter and 10% to $312 million in the year-to-date; comparable store sales declined 14% and 15%, respectively. On a constant-exchange-rate basis, total sales declined 2% in the third quarter and 6% in the year-to-date; comparable store sales declined 7% and 11%, respectively. Management attributed soft demand across continental Europe, especially in France, to both local customers and foreign tourists, while strong local-currency sales growth in the United Kingdom was primarily attributable to higher foreign tourist spending.
  • Other sales rose 18% to $31 million in the third quarter due to increased wholesale sales of diamonds, and declined 7% to $71 million in the year-to-date as an increase in wholesale sales of diamonds was offset by lower retail sales in the United Arab Emirates (“UAE”). Comparable store sales declined 12% and 19% in the respective periods.
  • Tiffany opened four Company-operated stores in the third quarter and closed two existing locations, all in the Asia-Pacific region. At October 31, 2016, the Company operated 313 stores (125 in the Americas, 85 in Asia-Pacific, 55 in Japan, 43 in Europe, and five in the UAE), versus 305 stores a year ago (125 in the Americas, 79 in Asia-Pacific, 56 in Japan, 40 in Europe, and five in the UAE).

Other highlights:

  • Gross margins (gross profit as a percentage of net sales) of 61.0% in the third quarter and 61.4% in the year-to-date were higher than 60.2% and 59.7%, respectively, in the prior year. The increases were due to lower product input costs, changes in product sales mix and price increases taken in the past year, partly offset by the impact of increased wholesale sales of diamonds.
  • SG&A expenses increased 4% in the third quarter primarily due to increases in store occupancy and depreciation expenses, marketing expenses, and labor and incentive compensation costs. SG&A expenses rose 1% in the year-to-date, primarily reflecting increased store occupancy and depreciation expenses, lower benefit costs and the effect of a loan impairment charge recorded last year.
  • The effective tax rates were 34.6% in the third quarter and 33.0% in the year-to-date, versus 35.5% and 34.8%, respectively, in the prior-year. The decline from last year in the year-to-date effective tax rate reflected the favorable impact of the conclusion of a tax examination in this year’s first quarter.
  • Cash and cash equivalents and short-term investments were $787 million at October 31, 2016, versus $725 million at October 31, 2015. Total debt (short-term and long-term) as a percentage of stockholders’ equity was 38% at October 31, 2016 and 37% at October 31, 2015.
  • Net inventories at October 31, 2016 were 2% lower than at October 31, 2015.
  • Capital expenditures were $157 million and $159 million in the nine months ended October 31, 2016 and 2015.
  • The Company repurchased approximately 455,000 shares of its Common Stock in the third quarter at an average cost of approximately $68 per share, and repurchased approximately 2.8 million shares at an average cost of approximately $65 per share in the year-to-date. At October 31, 2016, approximately $313 million remained available for repurchases under a program that authorizes the repurchase of up to $500 million of the Company’s Common Stock and that expires on January 31, 2019.
  • With respect to the impact of recent election-related activity near the Company’s New York Flagship store, management has noted some adverse effect on traffic in that store and a continuation of sales softness relative to prior year and to the Company’s other U.S. stores this year. That store represented less than 10% of worldwide net sales for the three and nine-month periods ended October 31, 2016, as well as for each quarter in fiscal 2015. The Company cannot provide any assurance that sales in that store will not be negatively affected by this activity in the fourth quarter or in any future period.

Outlook:

For the full 2016 fiscal year, management is maintaining its outlook to expect: (i) worldwide net sales declining by a low single-digit percentage from the prior year and (ii) earnings per diluted share declining by a mid-single-digit percentage from 2015’s adjusted earnings (which excluded loan impairment and certain staffing and occupancy charges – see “Non-GAAP Measures”). These expectations are approximations and are based on the Company’s plans and assumptions, including: (i) worldwide gross retail square footage increasing 3%, net through 11 store openings, 6 relocations and 6 closings; (ii) operating margin below the prior year (excluding the prior year’s charges – see “Non-GAAP Measures”) due to an anticipated increase in gross margin more than offset by SG&A expense growth; (iii) interest and other expenses, net unchanged from 2015; (iv) an effective income tax rate lower than the prior year; (v) the U.S. dollar unchanged at current spot rates versus other foreign currencies for the balance of the year; and (vi) weighted average diluted shares outstanding lower than in fiscal 2015.

Management also expects for the full 2016 fiscal year: (i) net cash provided by operating activities of at least $660 million and (ii) free cash flow (net cash provided by operating activities less capital expenditures – see “Non-GAAP Measures”) of at least $400 million. These expectations are approximations and are based on the Company’s plans and assumptions, including: (i) net inventories unchanged from the prior year, (ii) capital expenditures of $250 million and (iii) net earnings in line with management’s expectations as described above.

Today’s Conference Call:

The Company will conduct a conference call today at 8:30 a.m. (Eastern Time) to review actual results and the outlook. Please click on http://investor.tiffany.com (“Events and Presentations”).

Next Scheduled Announcements:

The Company expects to report its sales results for the two month holiday period ending December 31, 2016 on Tuesday January 17th before the market opens. To be notified of future announcements, please register at http://investor.tiffany.com (“E-Mail Alerts”).

Tiffany is the internationally-renowned jeweler founded in New York in 1837. Through its subsidiaries, Tiffany & Co. manufactures products and operates TIFFANY & CO. retail stores worldwide, and also engages in direct selling through Internet, catalog and business gift operations. For additional information, please visit www.tiffany.com or call our shareholder information line at 800-TIF-0110.

Forward-Looking Statements:

The historical trends and results reported in this document and on our third quarter earnings call should not be considered an indication of future performance. Further, statements contained in this document and made on such call that are not statements of historical fact, including those that refer to plans, assumptions and expectations for the current fiscal year and future periods, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, the statements under “Outlook” as well as statements that can be identified by the use of words such as ‘expects,’ ‘projects,’ ‘anticipates,’ ‘assumes,’ ‘forecasts,’ ‘plans,’ ‘believes,’ ‘intends,’ ‘estimates,’ ‘pursues,’ ‘continues,’ ‘outlook,’ ‘may,’ ‘will,’ ‘can,’ ‘should’ and variations of such words and similar expressions. Examples of forward-looking statements include, but are not limited to, statements we make regarding the Company’s plans, assumptions, expectations, beliefs and objectives with respect to store openings and closings; product introductions; sales; sales growth; sales trends; store traffic; retail prices; gross margin; operating margin; expenses; interest and other expenses, net; effective income tax rate; net earnings and net earnings per share; share count; inventories; capital expenditures; cash flow; liquidity; currency translation; growth opportunities; litigation outcomes and recovery related thereto; the collectability of amounts due under financing arrangements with diamond mining and exploration companies; and certain ongoing or planned product, marketing, retail, manufacturing, information systems development, upgrades and replacement, and other operational and strategic initiatives.

These forward-looking statements are based upon the current views and plans of management, speak only as of the date on which they are made and are subject to a number of risks and uncertainties, many of which are outside of our control. Actual results could therefore differ materially from the planned, assumed or expected results expressed in, or implied by, these forward-looking statements. While we cannot predict all of the factors that could form the basis of such differences, key factors include, but are not limited to: global macroeconomic and geopolitical developments; changes in interest and foreign currency rates; shifting tourism trends; regional instability, violence (including terrorist activities), election-related or other political activities or events, and weather conditions that may affect local and tourist consumer spending; changes in consumer confidence, preferences and shopping patterns, as well as our ability to accurately predict and timely respond to such changes; shifts in the Company’s product and geographic sales mix; variations in the cost and availability of diamonds, gemstones and precious metals; changes in our competitive landscape; disruptions impacting the Company’s business and operations; failure to successfully implement or make changes to the Company’s information systems; gains or losses in the trading value of the Company’s stock, which may impact the amount of stock repurchased; and our ability to successfully control costs and execute on, and achieve the expected benefits from, the operational and strategic initiatives referenced above. Developments relating to these and other factors may also warrant changes to the Company’s operating and strategic plans, including with respect to store openings, closings and renovations, capital expenditures, information systems development, inventory management, and continuing execution on, or timing of, the aforementioned initiatives. Such changes could also cause actual results to differ materially from the expected results expressed in, or implied by, the forward-looking statements.

Additional information about potential risks and uncertainties that could affect the Company’s business and financial results is included under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2016 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent quarterly report on Form 10-Q. Readers of these documents should consider the risks, uncertainties and factors outlined above and in the Form 10-K in evaluating, and are cautioned not to place undue reliance on, the forward-looking statements contained herein. The Company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances, except as required by applicable law or regulation.

Contact:
Mark L. Aaron
212-230-5301
mark.aaron@tiffany.com

Source: Tiffany & Co.

PetSmart to release its 3Q 2016 financial results on Monday, December 12, 2016

PHOENIX, AZ , 2016-Nov-30 — /EPR Retail News/ — PetSmart, Inc. (the “Company”) plans to make its third quarter 2016 results available on the Company’s secure website on Monday, December 12, 2016. The Company will also hold an investor conference call to review its results for the third quarter 2016 on Tuesday, December 13, 2016. The results and call will be made available to lenders under the credit facilities, holders of the Company’s 7.125% Senior Notes due 2023 (the “notes”), bona fide prospective investors of the notes, bona fide securities analysts and bona fide market makers.

The lenders under the credit facilities will receive details on how to access the call from the administrative agents for the respective credit facilities.

Holders of the notes, prospective investors, securities analysts and market makers that have not previously registered with the Company must contact the Company to pre-register and certify eligibility in order to access the financial results and dial-in information for the conference call. To receive information on how to pre‐register and certify eligibility, parties should send an email to investorrelations@petsmart.com. Requests for pre-registration must be received by Wednesday, December 7, 2016.

About PetSmart®
PetSmart, Inc. is the largest specialty pet retailer of services and solutions for the lifetime needs of pets. At PetSmart, we love pets, and we believe pets make us better people. Every day with every connection, PetSmart’s passionate associates help bring pet parents closer to their pets so they can live more fulfilled lives. This vision impacts everything we do for our customers, the way we support our associates and how we give back to our communities. We employ approximately 55,000 associates, operate 1,500 pet stores in the United States, Canada and Puerto Rico and 204 in-store PetSmart® PetsHotel® dog and cat boarding facilities. PetSmart provides a broad range of competitively priced pet food and pet products and offers dog training, pet grooming, pet boarding, PetSmart Doggie Day Camp day care services and pet adoption services in-store. Our portfolio of digital resources for pet parents – including PetSmart.com, PetFoodDirect.com, Pet360.com, petMD.com and AllPaws.com – offers the most comprehensive online pet supplies and pet care information in the U.S. Through our in-store pet adoption partnership with independent nonprofit organizations, PetSmart Charities® and PetSmart Charities™ of Canada, PetSmart helps to save the lives of more than 500,000 homeless pets each year.

Contact:
PetSmart Investor Relations
Kim Smith, Tom Melito
623-587-2025

Source: PetSmart Inc.

Lowe’s Companies, Inc. announces 3Q 2016 financial results

MOORESVILLE, N.C., 2016-Nov-18 — /EPR Retail News/ — Lowe’s Companies, Inc. (NYSE: LOW) today (November 16, 2016) reported net earnings of $379 million and diluted earnings per share of $0.43 for the quarter ended October 28, 2016, which includes certain non-cash pre-tax charges of $462 million further described below. Excluding the impact of these charges, adjusted net earnings1 for the third quarter were $775 million, a 5.3 percent increase over net earnings from the same period a year ago, and adjusted diluted earnings per share1 increased 10.0 percent to $0.88 from diluted earnings per share of $0.80 in the third quarter of 2015.

For the nine months ended October 28, 2016, net earnings were $2.4 billionand diluted earnings per share were $2.73.  Excluding the impact of the non-cash charges, as well as the net gain in the first half of the year on the settlement of a foreign currency hedge entered into in advance of the company’s acquisition of RONA, inc. (RONA), adjusted net earnings1 were $2.8 billion, an increase of 9.7 percent over net earnings from the same period a year ago, and adjusted diluted earnings per share1 increased 15.6 percent to $3.12 from diluted earnings per share of $2.70 in the same period a year ago.

The non-cash pre-tax charges referenced above consisted of the following:

  • $290 million resulting from the wind down of Hydrox, a joint venture in which Lowe’s holds a one-third ownership interest.  Woolworths, the other joint venture partner, claimed a unilateral termination of the joint venture agreement and initiated the wind down of Hydrox in August, 2016.  Hydrox operates Masters Home Improvement stores and Home Timber and Hardware Group’s retail stores in Australia.  Lowe’s will treat its claim for additional value under the joint venture agreement, above and beyond any amounts expected to be received through the wind down process, as a contingent asset and will recognize these amounts as they are realized.  This matter is currently in arbitration;
  • $96 million related to a write-off for projects that were canceled as part of the company’s ongoing review of strategic initiatives in an effort to focus on the critical projects that will drive desired outcomes; and
  • $76 million related to goodwill and long-lived asset impairments associated with the company’s Orchard Supply Hardware operations as part of a strategic reassessment of this business during the third quarter.

Media Inquiries:

704-758-2917
PublicRelations@Lowes.com

SOURCE: Lowe’s Companies, Inc.

Stein Mart to release its 3Q 2016 financial results on Thursday, November 17, 2016

JACKSONVILLE, Fla., 2016-Nov-09 — /EPR Retail News/ — Stein Mart, Inc. (NASDAQ:SMRT) will release its third quarter 2016 financial results before the U.S. financial markets open on Thursday, November 17, 2016. Management will also host a conference call to discuss results at 10:00 AM ET on the same day.

If you would like to participate in the conference call, the U.S. toll free dial-in is 1-877-705-6003 and the international dial-in number is 1-201-493-6725. A live webcast of the conference call will also be available on the investor relations page of the company’s website at http://ir.steinmart.com. A replay of the call will be available on the website through November 30, 2016.

About Stein Mart
Stein Mart, Inc. (NASDAQ:SMRT) is a national retailer offering designer and name-brand fashion, accessories and home decor at everyday discount prices. Stein Mart provides real value that customers will love every day both in stores and online. The Company currently operates 290 stores across 31 states. Stein Mart is adding new modern brands to its stores to offer discriminating shoppers even more of the fashion and savings they want. For more information, please visit www.steinmart.com.

Additional information about Stein Mart, Inc. can be found at www.steinmart.com

For more information:

Linda L. Tasseff
Director
Investor Relations
(904) 858-2639
ltasseff@steinmart.com

Source: Stein Mart, Inc./globenewswire

CommerceHub to release its 3Q 2016 financial results on November 7, 2016

ALBANY, N.Y., 2016-Oct-26 — /EPR Retail News/ — CommerceHub (NASDAQ:CHUBA) (NASDAQ:CHUBK) (“CommerceHub” or the “Company”), a leading distributed commerce network for retailers and brands, today (Oct. 24, 2016) announced that it will issue its financial results for the three months ended September 30, 2016 after the market close on Monday, November 7, 2016. On the same day, CommerceHub will host a conference call and webcast to discuss the results at 4:30 p.m., Eastern Time, during which its management team will discuss the Company’s financial performance and strategy, and may discuss future opportunities. After the conference call is completed, a recorded version of the call will be available at http://ir.commercehub.com.

What: CommerceHub Third Quarter 2016 Financial Results

When: Monday, November 7th, 2016

Time: 4:30 p.m. Eastern Time

Live Call: U.S./Canada Toll-Free Participants Dial-in Number: (888) 291-9442 International Toll Participants Dial-in Number: (615) 247-0152 Conference ID/Passcode: 97899222

Webcast (live and replay): http://ir.commercehub.com

About CommerceHub:

CommerceHub is a distributed commerce network connecting supply, demand and delivery that helps retailers and brands increase sales by expanding product assortments, promoting products on the channels that perform, and enabling rapid, on-time customer delivery. With its robust platform and proven scalability, CommerceHub helped approximately 9,500 customers achieve an estimated $11.6 billion in Gross Merchandise Value in 2015.

Investor Relations Contact:
Erik Morton
1-206-971-7712
investor@commercehub.com

Media Contact:
Laura Anderson
1-203-682-8267
CommerceHubICR@icrinc.com

Source: CommerceHub/globenewswire

Chipotle Mexican Grill, Inc. to host 3Q 2016 financial results conference call on October 25, 2016

DENVER, 2016-Sep-29 — /EPR Retail News/ — Chipotle Mexican Grill, Inc. (NYSE: CMG) today (Sep. 28, 2016) announced that it will host a conference call to discuss third quarter 2016 financial results on Tuesday, October 25, 2016 at 4:30 PM Eastern time. A press release with third quarter 2016 financial results will be issued at approximately 4:10 PM Eastern time that same day.

The conference call can be accessed live over the phone by dialing 1-877-857-6149 or for international callers by dialing 1-719-325-4751. A replay will be available approximately two hours after the call and can be accessed by dialing 1-877-870-5176 or 1-858-384-5517 for international callers; the password to access the replay is 1052659. The replay will be available until November 1, 2016. The call will also be webcast live from the Company’s website on the investor relations page at ir.chipotle.com. An archived webcast will be available approximately one hour after the end of the call.

About Chipotle

Steve Ells, founder, chairman and co-CEO, started Chipotle with the idea that food served fast did not have to be a typical fast food experience. Today, Chipotle continues to offer a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads made from fresh, high-quality ingredients, prepared using classic cooking methods and served in a distinctive atmosphere. Through our vision of Food With Integrity, Chipotle is seeking better food from using ingredients that are not only fresh, but that—where possible—are sustainably grown and raised responsibly with respect for the animals, the land, and the farmers who produce the food. In order to achieve this vision, we focus on building a special people culture that is centered on creating teams of top performers empowered to achieve high standards. This people culture not only leads to a better dining experience for our customers, it also allows us to develop future leaders from within. Chipotle opened with a single restaurant in 1993 and operates more than 2,100 restaurants, including 27 Chipotle restaurants outside the US and 15 ShopHouse Southeast Asian Kitchen restaurants, and is an investor in an entity that owns and operates four Pizzeria Locale restaurants. For more information, visit Chipotle.com.

Contact:

Chipotle Mexican Grill, Inc.
Mark Alexee
303-605-1042
malexee@chipotle.com

Source: Chipotle Mexican Grill, Inc.